Retirement Income Credit
If you were age 62 or older on December 31, 2011, and receiving retirement income, you may qualify for a retirement income credit if:
- Your household income is less than $22,500 ($45,000 if married/RDP filing jointly), and
- Your Social Security benefits and/or tier 1 Railroad Retirement Board benefits are less than $7,500 ($15,000 if married/RDP filing jointly), and
- Your household income plus your Social Security and/or tier 1 Railroad Retirement Board benefits is less than $22,500 ($45,000 if married/RDP filing jointly).
Retirement income includes payments reported in Oregon taxable income from:
- U.S. government pensions (including military).
- State or local government pensions.
- Employee pensions.
- Individual retirement plans.
- Deferred compensation plans including defined benefit, profit sharing, and 401(k).
- Employee annuity plans.
Household income includes all taxable and nontaxable income of each spouse or RDP except:
- Social Security and tier 1 Railroad Retirement Board benefits.
- Your state income tax refund.
- Pension income excluded from federal AGI that is a return of your contributions.
- Pensions that are rolled over into an IRA.
Any losses claimed are limited to $1,000 for each activity. Depreciation is limited to $5,000. The credit cannot be more than your tax liability. You cannot carry any amount that is more than your tax liability over to next year. You may claim this credit or the credit for the elderly or the disabled, but not both.
Political Contribution Credit
Fill in your total political contributions, up to $100 on a joint return or up to $50 on all others. Your contribution(s) of money must have been made during 2011 to any of the following:
- A political party.
- A qualified candidate (or the candidate’s principal campaign committee) for federal, state, or local office to be voted for in Oregon.
- A political action committee certified in Oregon.
Credit for Taxes Paid to Another State
If you were a full-year Oregon resident and had income taxed by Arizona, California, Indiana, or Virginia, you cannot claim the credit on your Oregon return. However, you can claim the credit on the nonresident return you file with those states. If income is taxed by Oregon and another state not listed here, claim the credit on your Form 40 Oregon Resident return.
This credit is only for state income tax. You cannot claim this credit for city or county income tax, sales, tax, alternative minimum tax (AMT), property tax, school tax, or building funds.
Your credit is the smallest of the following:
- The other state's 2011 net tax liability.
- Your Oregon tax liability after all credits, except credits for income taxes paid to other states.
We will automatically calculate this credit for your Resident Oregon return when you add a Nonresident other state return to your account. If you have a Part-Year Oregon return, you will need to manually enter the information asked within the Oregon state program.
Oregon offers several other credits that are available within the Credits section of the Oregon state program. Please refer to the instructions for Oregon Form 40 to see a complete list of available credits with instructions.